Integral Intertwining Operators and Complex Powers of Differential (q-Difference) Operators

We study a family of modules over Kac-Moody algebras realized in multi-valued functions on a flag manifold and find integral representations for intertwining operators acting on these modules. These intertwiners are related to some expressions involving complex powers of Lie algebra generators. When applied to affine Lie algebras, these expressions give integral formulas for correlation functions with values in not necessarily highest weight modules. We write related formulas out in an explicit form in the case of $\hat{\gtsl_{2}}$. The latter formulas admit q-deformation producing an integral representation of q-correlation functions. We also discuss a relation of complex powers of Lie algebra (quantum group) generators and Casimir operators to ($q-$)special functions.